PERTH (miningweekly.com) – Australian Resources Minster Matt Canavan on Thursday said that the latest World Energy Outlook had reinforced opportunities for Australia to strengthen its role as a growing, reliable and competitive supplier of high quality coal and gas to Asia, including the fast-growing Indian economy.

The World Energy Outlook 2019, released by the International Energy Agency (IEA), has estimated that under the Current Policies Scenario, global energy demand will rise by 1.3% a year to 2040, resulting in strains across all aspects of energy markets and a continued strong upward march in energy-related emissions.

In the Stated Policies Scenario, energy demand increases by 1% per year to 2040. Low-carbon sources, led by solar PV, supply more than half of this growth, and natural gas accounts for another third. Oil demand flattens out in the 2030s, and coal use edges lower. Some parts of the energy sector, led by electricity, undergo rapid transformations. Some countries, notably those with “net zero” aspirations, go far in reshaping all aspects of their supply and consumption.

“What comes through with crystal clarity in this year’s World Energy Outlook is there is no single or simple solution to transforming global energy systems,” said IEA executive director Dr Fatih Birol.

“Many technologies and fuels have a part to play across all sectors of the economy. For this to happen, we need strong leadership from policy makers, as governments hold the clearest responsibility to act and have the greatest scope to shape the future.”

Canavan said the report highlighted the growth in demand for energy in India and developing countries in Asia, with ongoing demand for coal despite the rising use of renewable energy and a fall in coal demand from the United States and China.

“The latest World Energy Outlook underlines the important role coal plays in industrial development and as a major contributor to the global energy mix for the foreseeable future. Coal remains the largest source of electricity generated in Asia, and the lowest cost in many Asian energy markets.

“India is set to double its own coal production by 2040, however, the increase will not be enough to meet growth in demand and India will overtake China as the world’s biggest coal importer by the mid-2020s. India still has nearly 170-million people who have no access to electricity.

“Australia is well placed to help India meet its growing demand for coal as it continues to develop and extend electricity supplies across the country. India has been identified as a hotspot for Australian thermal coal exports, with its potential demand creating up to 4 000 new jobs in regional Australia.”

By 2040, Australian net coal exports are forecast to have grown by 65-million tonnes of coal equivalent, or 18%, reaffirming the important role Australia plays in supplying high quality resources, including coal, to our international trading partners, Canavan said.

On liquefied natural gas (LNG), the World Energy Outlook 2019 said Australia had short-term challenges to maintain supplies for domestic consumption growth and exports. However, global natural gas demand is expected to increase by 40% by 2040.

Canavan said that Australia could play a key role in supplying this demand especially if states remove restrictions on gas development.

“The World Energy Outlook estimates that overall Australian natural gas production could double by 2040, requiring major new investment and also providing new opportunities for downstream industry and manufacturing right here in Australia.”

The Minster also noted the World Energy Outlook cautioned that an increasing number of lenders were placing restrictions on coal project funding, which could see some projects struggle and therefore open up opportunities for overseas producers (like Russia) to increase their market share.

“All I ask is that our financial institutions do their job - invest in projects in Australia that generate revenue for our nation and create jobs for our people. I want them to focus on those projects which stack up, and those projects which can provide economic benefits not just to themselves through lending but also to our nation.”